Saks narrows loss but misses estimates

Shares of luxury retailer Saks Inc. fell after the company announced a wider-than expected quarterly loss due to consolidation costs and increased administrative expenses.

Saks lost $24.6 million, or 17 cents per share, during the second quarter, improved from a year-earlier, when it lost $51.9 million, or 38 cents a share. Sales rose 15% to $694.1 million.

The company posted $4.3 million of after-tax costs, including $2 million related to the consolidation of its mid-priced retail operations and $2 million in asset impairments. Administrative costs rose $21 million for the quarter.

The latest results missed Wall Street estimates, which called for a loss of 15 cents a share.

Saks has been heavily investing in shifting its inventory back to classic tailored office wear, as well as remodeling, such as the new shoe floor at its Saks Fifth Avenue store in Manhattan. Net capital expenditures for the six months ended Aug. 4 topped $60 million.

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